Cost Management Flashcards
What is the process of cost management?
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs
What is the key outputs of the Plan Cost
Management process?
Cost management plan
What are the key inputs to the Estimate
Cost process?
Cost management plan
Scope baseline
Project schedule
Human resource management plan
Risk register
Enterprise environmental factors
Organizational process assets
What are the key outputs of the Estimate
Cost process?
Activity cost estimates
Basis of estimates
Updates to project documents
What are the key outputs of the
Determine Budget process?
Cost baseline
Project funding requirements
Updates to project documents
What are the key outputs of the Control
Costs process?
Work performance information
Cost forecasts
Change requests
Updates to project management plan
and project documents
What are the main approaches to cost or
schedule estimating?
One-point estimating
Analogous estimating
Bottom-up estimating
Parametric estimating
Three-point estimating
What is analogous estimating?
Top-down estimating that use expert judgement and historical information to predict the future (for example,"The last three projects cost $25,000, or took six months, and so should this one")
What is bottom-up estimating?
Creating estimates based on the details
of the project (e.g., from the bottom of
the work breakdown structure), which
are then rolled up into the project estimates
What are parametric estimating?
Calculating estimates by looking at the relationships between variables on an activity (e.g., cost per line of code, hours per installation), based on historical information, industry requirement, standard metrics, or other sources
What is earned value management, and
how is it used?
A method of measuring project performance that looks at the value earned for work, accomplished, by reviewing project performance against the scope, schedule, and cost baselines
It can be used to predict future cost
performance and project completion
dates
What is the typical range for a rough
order of magnitude (ROM) estimate?
-25 to +75 percent from actual
What is the typical range for a budget
estimate?
-10 percent to +25 percent from actual
What is the typical range for a definitive
estimate?
+/-10 percent from actual
What is the difference between a cost
budget and a cost baseline?
The cost budget adds management
reserves to the cost baseline
